World Business Chicago Annual Report 2010

Annual Report 2010

From the Chairman Dear Friends,

As the end of my tenure as Mayor of Chicago approaches, one of the accomplishments of which I am extremely proud is the creation and success of World Business Chicago (WBC). This unique partnership brings together the public and private sectors to generate economic growth within the city and the region.

Over the years, WBC has worked with world-renowned companies including Boeing, MillerCoors, Veolia Environment and ArcelorMittal Steel. Whether domestic or international, big or small, companies

looking to grow here receive the attention and information they need from World Business Chicago.

Even in the toughest of economic times, companies are expanding to new cities and markets, and World Business Chicago continues to promote Chicago to the world – showing that we are open for business.

Year after year, WBC earns accolades for being one of the most innovative and effective economic development agencies. Now more than ever, it is important that this distinguished organization continues to bridge the public and private sectors, highlighting Chicago as the ultimate global business destination.

Thank you for your continued support.

Richard M. Daley

Mayor, City of ChicagoChairman of the Board, World Business Chicago

Executive SummaryThis past year Aqua, the high-rise featured on the cover of this report, won the prestigious Emporis Award as the “best new skyscraper for design and functionality” in the world. Not only is the building visually stunning, but it also features the largest “green” roof in Chicago and is the tallest building in the world to have a woman (Jeanne Gang) as lead architect. This new architectural marvel is just one symbol of Chicago’s excellence on the world stage. We are a top city for business internationally, and continue to rank higher on indicators such as Global Financial Centres, Cities of Opportunity, and Global Cities Index, on which Chicago jumped from #8 to #6 as a leading global city this year.

These measures mean we are heading in the right direction. During the past year, we’ve found new ways to market Chicago’s business advantages with limited resources. We’ve relied on close relationships with our business and civic partners to collaborate and bring businesses to Chicago, despite the economic downturn. These collaborations have provided tremendously successful interactions with foreign business and government leaders, both here and abroad. We’ve hosted prestigious leaders in conjunction with the U.S. Saudi Opportunities Forum, Global Cities Forum, GreenBuild, Experience America, and more. We also traveled to the Shanghai World Expo to make Chicago top of mind for business and government leaders.

Our board and the private sector serve as our biggest advocates in promoting Chicago as a business destination, making our organization unique – and successful.

The city’s supportive government has also been a huge reason for success. Since World Business Chicago’s creation nearly 11 years ago, the business community has worked closely with Mayor Richard M. Daley to lay the foundation for the ultimate global business destination. That foundation is strong. We are continually reminded of Chicago’s unrivaled attributes: its strong and diverse economy; central location with easy access to the world; leadership in a wide range of key industries; and quality of life that cannot be surpassed.

We invite you to review our accomplishments over the past year in the pages ahead. And we look forward to working together to continue to bring companies—and jobs—to Chicago in 2011.

Sincerely,

Michael O’HalleranCo-Chairman of the Board of Directors, World Business ChicagoExecutive Chairman, Aon Benfield Corporation

Rita R. AthasPresident, World Business Chicago

Trading floor at The CME Globex Control Center

Chicago’s diverse economy has been a strong advantage during times of economic uncertainty. This year, Chicago ranked among eight cities designated as Global Leaders in the 7th biannual Global Financial Centres report, commissioned and published by the City of London. The report noted “Chicago is not just strong in derivatives trading, for which it is probably best known, but is a real ‘all-rounder’: it is

strong in all areas, and in the Top 10 in all industry and area of competitiveness sub-indices.”

Industry LeadershipIn 2010, World Business Chicago (WBC) staff members supported high-growth industries that have the potential to shape the future

of Chicago’s economy.

Financial Trading

Over the last year, numerous financial trading firms including Nico Holdings, Infinium Capital Management and Getco have grown significantly in the city. WBC, along with Mayor Richard M. Daley, convened a prominent group of financial technology—“fin-tech”—leaders to discuss ways the City can support and expand the industry. Financial trading and investment accounts for nearly 50,000 jobs locally and contributes significantly to Chicago’s position as a center of the global economy.

Bringing Business to Chicago

“Chicago has become a catalyst in the transfor-mation of the global financial marketplace, and has reaffirmed its leadership with a new set of trading entrepreneurs now involved in hedge funds, proprietary trading groups, arcades and technology companies. By creating a group focused on the needs of these companies, WBC and the City are laying the foundation for jobs of tomorrow.”

- Terrence Duffy, Executive Chairman, CME Group & WBC board member

The Tech Eco-System

The city has also seen a booming technology community converge, and WBC is cultivating a group of leaders pledging their commitment to Chicago. WBC convened a prominent group of technology executives to offer both short- and long-term suggestions on how to meet the explosive and unique needs of this industry.

The group met at 600 West Chicago Ave. (600 West), the former Montgomery Ward catalog warehouse – one of the country’s most successful mixed-use redevelopment projects and current headquarters of Groupon.

Groupon is the flourishing group-buying website started in Chicago in November of 2008. Forbes Magazine recently named Groupon the “fastest growing company ever,” having expanded its presence to 85 North American markets, and 29 countries, and having hired more than

1,200 people in just 18 months.

A Diverse Range of Companies

From multi-national to homegrown, WBC facilitates growth in Chicago. In 2010, the organization worked with more than 100 companies. Of these, 25 announced or completed expansion projects in 2010, resulting in more than 3,200 new jobs in the Chicago region.

Highlights:

WBC worked with Accretive Health Inc., a rapidly-growing, innovative, Chicago-based healthcare financial services company, on plans to hire 650 employees at its new Accretive Health Processing Facility at 231 S. LaSalle St. The company,

which manages revenue cycles for hospital systems and physicians networks, currently employs 175 people at its headquarters at 401 N. Michigan Avenue, and is creating the additional new office to accommodate its growing business.

“The city has created a phenomenal foundation for today’s technology companies, and even more importantly for the technology companies of the future. It’s now up to Chicago’s leaders in technology to create the next generation of companies that will be started in our backyard. World Business Chicago plays an integral role in bringing our community together to think of what we can all do as founders, cheerleaders, as facilitators of the next stage of success in Chicago.”

- Brad Keywell, co-founder, Groupon & Managing Director, Lightbank.

More than 10 wind companies have established headquarters in Chicago including Goldwind in 2010

Amsterdam-based James Hardie, the world’s leading manufacturer of fiber-cement building materials, also selected Chicago for its new North American headquarters in 2010. WBC worked with the company to sign a 22,000-square-feet lease for office space at 231 S. LaSalle, housing approximately 100 R&D, engineering, manufacturing, HR, logistics/product management, finance, legal and customer service functions.

And, when German company K+S acquired Chicago-based Morton Salt, it moved the worldwide headquarters of its salt business from Santiago, Chile to Chicago, adding employees and designating Chicago the “Salt Capital of the World.”

In addition, WBC assisted two life science companies relocating and expanding in Chicago. Therapeutic Proteins Inc. (TPI) established its own FDA-compliant manufacturing facility at the University Technology Park (UTP) Illinois Institute of Technology (IIT). Sword Diagnostics also relocated its corporate headquarters and research facilities to UTP, doubling the size of its previous space in the suburbs and marking its shift from start-up venture to growth-stage commercial entity.

Walgreens, the nation’s largest drugstore chain, based in suburban Chicago opened its first downtown Chicago office, with 65 of its e-commerce department employees locating at the historic Sullivan Center, 1 S. State St. The move reflectes the city’s strong position as a leader in technology-driven business and a center for information-intensive industries, such as e-commerce.

WBC first provided Goldwind, one of the world’s top five global wind power companies, with information on Chicago’s leadership as a wind power center in 2009, and followed up with a visit to Goldwind’s Beijing complex. The wind giant’s U.S. arm, Goldwind USA Inc., moved into short-term space at 22 W. Washington Street in spring of 2010, with plans for a long-term office space underway. Goldwind joins at least 10 other wind companies that have established North American headquarters in Chicago.

Additionally, WBC assisted Coyote Logistics in its decision to locate its new corporate headquarters in Chicago, after an extensive search throughout Chicago and Atlanta. The company selected 65,000 square feet of new space on Chicago’s North Side at 2545 West Diversey Ave., known as the Green Exchange for its emphasis on sustainability. The company chose the location in part to have access to the city’s unmatched talent pool.

Chicago has the advantage of being home to supportive business leaders who promote the city here and abroad. In addition, WBC is fortunate to be able to utilize the services of marketing partners throughout the city to promote Chicago’s message globaly.

International OutreachIn 2010, World Business Chicago traveled abroad to advance awareness of Chicago as a business destination, and hosted visiting foreign dignitaries and business leaders to build key relationships for future growth. For example, WBC helped organize business and civic leaders in the rare opportunity to showcase Chicago to the world during the World Expo in Shanghai, China. “Chicago Days” was the result of a unique and strong collaboration between many agencies within

Keeping Chicago Top-of-Mind for Companies Here and Abroad

“Our delegation carried the message that Chicago is open for business. Our goal was to communicate that our city provides one of the world’s most diverse economies and cultures, coupled with a highly skilled workforce; easy access to North American and world markets; and incomparable quality of life.”

- Deb DeHaas, Vice Chairman & Midwest Regional Managing Partner, Deloitte LLP. & World Business Chicago board member.

the city, including the Chicago Office of Tourism, Chicago Convention & Tourism Bureau, Chicagoland Chamber of Commerce, Chicago Sister Cities International, Illinois Office of Tourism and World Business Chicago. To kick off the tribute to the city, WBC hosted a

reception for more than 150 guests at the USA Pavilion, an elite business leader roundtable discussion, and a reception for Chicago university alumni living in Shanghai (Shanghai is home to 643 alumni from DePaul University, Northwestern University, University of Chicago, Columbia College Chicago, University of Illinois at Chicago, Illinois Institute of Technology and Loyola University Chicago).

In order to encourage direct investment and trade, while strengthening business

ties, World Business Chicago President Rita Athas traveled with Mayor Richard M. Daley and corporate leaders, using this unique platform to showcase Chicago’s business advantages and build long-standing relationships.

The mission was deemed a tremendous success. Mayor Daley’s Chinese counterpart at a business roundtable noted that Chicago’s mayor was the first to engage Chinese business leaders face-to-face by traveling to China.

WBC also hosted numerous international business delegations and dignitaries visiting Chicago, many of which directly resulted from Chicago delegations traveling abroad. In response to a business delegation trip to South Korea a few months earlier, the mayor of Seoul, South Korea visited Chicago, where he met one-on-one with business leaders. And, a United Arab Emirates (UAE) government delegation added Chicago to their “must visit” itinerary of Washington, New York and Houston due to a Chicago business delegation trip to the UAE in 2009.

The U.S.-Saudi Business Opportunities Forum also provided a unique opportunity for international outreach. Rita Athas delivered the keynote presentation at the two-day Chicago conference highlighting the opportunities for greater economic collaboration between Saudi Arabia and the U.S., presenting Chicago’s economic development strategy to 800 participants, including Saudi government and business leaders.

WBC also hosted a reception honoring the companies it has helped move to, or expand in, Chicago over the past 10 years. This connected them with international leaders attending the 2010 Richard J. Daley Global Cities Forum. The Forum assembled leaders of more than 100 cities and local governments, along with prominent business, civic, academic and foundation leaders for discussions on key urban issues. Additionally, WBC, with the help of many board members, hosted a high-level diplomatic corps that visited Chicago as a part of new U.S. Office of Chief of Protocol program, Experience America.

Opportunities have also arisen for WBC to welcome visitors in conjunction with trade shows taking place in Chicago, including hosting more than 100 Chinese manufacturing executives in coordination with the International Manufacturing Technology Show (IMTS), and more than 200 international leaders in green technology that were in Chicago for GreenBuild 2010.

Innovating And Evolving

WBC has further engaged in new media to enhance the organization’s position as a full-service provider of comprehensive information on Chicago and its business environment.

In 2010, WBC launched a state-of-the-art website developed on a powerful open-source platform, allowing the organization to regularly publish news within Chicago’s business and economic development communities. In the first 10 months the new site had more than tripled the number of page-views over the previous year. News is posted to the site many times each week, often featuring multi-media such as YouTube interviews with Chicago-based business leaders, and up-to-date research and data.

Additionally, the organization topped 1,000 Twitter followers in 2010 and remains an active business community voice on other social media outlets including LinkedIn and Facebook.

Aggregating External Data For Wide-Spread UseIn 2010, WBC provided research assistance for more than 200 company and partner agency requests, in addition to proactively distributing more than 80 “economic alerts” on the state of

Chicago’s economy.

WBC’s research department analyzes and disseminates information from a variety of sources and partner organizations. This year, one study that was continually pointed to was Foreign Policy Magazine’s Global Cities Index. Chicago jumped two places—up from #8 in the world, to #6—on the biennial study done in conjunction with A.T. Kearney and The Chicago Council on Global Affairs.

Developing a Data Hub for Current and Potential Chicagoans

“As Chicago’s global position continues to increase in numerous rankings, it is vital that we keep track of those indicators and use them to guide our efforts. World Business Chicago plays an integral role in measuring where Chicago falls in global research reports, disseminating the information and utilizing it to build on the city’s plans for future economic development efforts.”

- Paul A. Laudicina, Managing Officer & Chairman of the Board, A.T. Kearney & WBC board member.

Creating Original Research The research department also created original research reports benefiting the city and its business community. Its comprehensive New & Expanding Database & Reporting Initiative, created this year, strengthens WBC’s role as a leading source for data on new and expanding companies in the Chicago region. The department also produced studies on Chicago’s export impact, its metro incentives and a study on Chicago’s emerging workforce.

The workforce study helps readers understand what brings students to—and what keeps students in—the Chicago region. The brief compares graduating student survey data provided by local universities with data from the Illinois Board of Higher Education, the ACCRA Cost of Living Index, and other local and regional economic indicators. The study concluded that young graduates choose Chicago because it offers attractive job and career opportunities, competitive salaries combined with a low cost of living, and a superior quality of life.

“Running an organization focused on being a leading global provider of career-oriented educational services, we know the value of a skilled workforce to companies and future employers. The City of Chicago understands the value behind its skilled employees, and World Business Chicago’s work in attracting this workforce, and creating data resources to appeal to potential Chicagoans cannot be underestimated.”

- Daniel Hamburger, President and Chief Executive Officer, DeVry Inc. & WBC board member.

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Prof. & Bus. Services^

Educ. & Health Services

Wholesale & Retail

Leisure & Hosp.

Gov't, Other Services

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Student surveys from undergraduate business programs at DePaul University, Loyola Chicago, and the University of Illinois at Chicago (UIC) reported that the most popular industries for recent graduates seeking jobs were in accounting and financial services.

Some schools like the University of Chicago reported students increasingly diversifying in fields such as healthcare, research science, and computer technology.

- An excerpt from Make Your Mark; 10 Reasons Recent Grads Choose to Start a Career in Chicago. A report by World Business Chicago.

City of Chicago; ^Incl FIRE and information industries. Source: Illinois Department of Employment Security

Pursue Any Career

Chicago Career Tech participant Melinda Belks on the job.

Chicago Career TechIn 2010, WBC officially launched Chicago Career Tech (CCT), an innovative program that creates a new corps of technology professionals by providing technology training for displaced white-collar workers.

The first pilot class of nearly 150 Chicago Career Tech participants completed their six-month program with an 89% graduation rate and a 98% certification rate. The second class began in October

with almost 300 participants. The program prepares participants for technology-based careers by providing training in an array of fields in high demand, including digital media, healthcare information technology, Microsoft certifications, network management, project management, technical sales, telecommunications, and web design and development. The unique program strengthens Chicago’s position as a technology center, while providing a path into technology jobs for displaced workers.

Advancing Chicago’s Human Capital

“Microsoft is honored to serve during Chicago Career Tech’s journey to empower our residents with 21st century digital literacy skills. As chair of the CCT board, I get a firsthand view of how digital skills offer people a way to succeed in the workplace while positioning Chicago to compete on a global scale.”

- Shelley Stern, Microsoft Central Region Community Outreach Director & Chairman, CCT advisory board

World Business Chicago’s 2010 Results√ Worked with companies creating & retaining more than 4,500 jobs

√ Worked with companies representing more than $400 mil. in investment

√ Worked with companies to occupy more than 1.3 mil. sq. feet of commercial real estate

√ Provided research and data for more than 200 company & partner agency requests

√ Successfully incubated & launched Chicago Career Tech

√ Published more than 80 “Economic Alerts”

√ Hosted more than 10 events with a total of more than 2,000 attendees

√ Presented to more than 125 domestic & international audiences

√ Received more than 300,000 webpage views

√ Generated more than 1.5 million advertising impressions

√ Topped more than 1,000 followers on Twitter

√ Created and distributed more than 5,000 print pieces

Scorecard

Boardof Directors

Chairman

Honorable Richard M. DaleyMayor, City of Chicago

Co-ChairmanMichael D. O’HalleranExecutive Chairman, Aon Benfield Corporation

Board of Directors Rita AthasPresident, World Business Chicago

James BellExecutive Vice President & CFO, The Boeing Company

Gregory Q. BrownPresident & CEO, Motorola Solutions

Debra CafaroChairman, President & CEO, Ventas, Inc.

William DaleyChairman, Midwest Region, J.P. Morgan Chase

Deborah DeHaasVice Chairman, Midwest Regional Managing Partner,Deloitte LLP

Craig J. DuchossoisChief Executive Officer, The Duchossois Group

Terrence DuffyChairman, CME Group

George FarrSr. Executive Vice President, Veolia Environnement & Veolia Environmental Services, North America

Daniel M. HamburgerPresident & CEO, DeVry Inc.

Mellody HobsonPresident, Ariel Investments

Paul A. LaudicinaManaging Officer & Chairman of the Board, A.T. Kearney

Michael H. MoskowVice Chairman, Senior Fellow for the Global Economy, Chicago Council on Global Affairs

Thomas F. MotamedChairman & CEO, CNA

J. Christopher ReyesChairman, Reyes Holdings, LLC

John E. RooneyPresident & CEO, U.S. Cellular Corp.

John W. RoweChairman, Exelon Corp.

Patrick G. Ryan, Jr.CEO, INCISENT Technologies

Carrie Simmons (Secretary)Director of Opperations, World Business Chicago

James SkogsberghPresident & CEO, Advocate Health Care

Glenn TiltonChairman, President & CEO, UAL Corporation

William Wrigley, Jr.Former Executive Chairman & Chairman of the Board, Wm. Wrigley, Jr. Company

ThanksWBC Annual Report 2010 photographs:

Front and back covers: Aqua Building in ChicagoCC, Clarkmaxwell @ flickr.com

Inside front cover: Chicago from a Chopper CC, Stuck in Customs @ flickr.com

Wind turbine image: EnergyCC, Tochis @ flickr.com

We would also like to thank the following for their generous in-kinddonations to WBC throughout 2010:

AT KearneyCity of ChicagoChicago Convention and Tourism BureauDeloitteDowntown Partners ChicagoDuane Morris LLPUnited Airlines

Printed sustainably using 100% wind power, eco-safe inks, paper, & pressroom chemistry

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About World Business ChicagoWorld Business Chicago (WBC) is Chicago’s not-for-profit economic development corporation, chaired by Mayor Richard M. Daley and directed by Rita R. Athas; the office fosters the Chicago region’s global position as a thriving business location.

WBC enhances Chicago’s economy through the growth of the private sector, building the best city in the world in which to live, work, and play. WBC is a public-private partnership funded jointly by the City of Chicago and the private sector; its Board of Directors, co-chaired by Aon Benfield Corporation Executive Chairman, Michael D. O’Halleran, is made up of some of the region’s leading business executives.

WBC coordinates the city’s business retention and attraction efforts, raises Chicago’s profile as a prime business location and serves as a resource for companies. The staff navigates the site selection process for businesses by providing economic and industry data, site location assistance, state and local incentive information, and bringing together key parties in the public and private sectors to spur and accelerate economic growth.

WorldBusinessChicago.com

World Business Chicago Annual Report 2010

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